The deadline for submitting this quarter’s Investment Activity Report (LKPM) is April 10, which is only a few days left. As stipulated in Regulation of the Ministry of Investment/BKPM number 5 of 2021, Business Actors are required to submit their Investment Activity Report to the Ministry of Investment. However, the deadline for the LKPM submission of micro and small-scale businesses is different from that of medium and large-scale businesses. This article will further discuss the deadlines of the LKPM submission and its technicalities, including the sanctions.

Micro and small-scale businesses are required to submit LKPM every semester, the deadline of which is every 10th of July and January of the following year. Meanwhile, medium and large scale businesses are required to submit LKPM every quarter with the submission deadline as follows:

• Q1 : 10th of April
• Q2 : 10th of July
• Q3 : 10th of October
• Q4: 10th of January the following year 

Before we delve into the technicalities of the LKPM submission, we need to know what LKPM is. LKPM is an investment activity report which covers labor absorption, export values, mandatory partnership, and other obligations related to investment activities in Indonesia. LKPM is further divided into two phases i.e., the construction/preparation phase and the production/commercial operation phase.

Read More: OJK is Preparing a New Draft Regulation on Foreign Insurance Ownership. Here are 5 important points.

To facilitate business actors in carrying out this reporting obligation, the Government has created and updated the platform to provide easy access for business actors to submit LKPM through the One Single Submission (OSS) system. Business actors need to have an access code to the OSS system before submitting their LKPM. After the LKPM is submtted to the OSS system, the Investment Implementation Control Department in the Ministry of Investment then evaluates the LKPM and sends it back with notification of revisions if necessary.

LKPM is used as a routine monitoring tool by the government, making it an important point of reference in analyzing investment trends and investment growth, which in turn helps accommodate business actors in carrying out their business activities.

Given the fact that LKPM is important for both business actors and the government, the submission of this report is mandatory for business actors, the violation or non-compliance of which, e.g., late submission of LKPM, is subject to sanctions. The sanctions vary from administrative sanctions to license revocation.

One of the services ET Consultant provides is assisting companies to submit their LKPM reports, ensuring a hassle-free process and allowing them to conduct business without any hindrances.

***

ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.

Ready to find out more?

Excellent and Trusted Consultant (ET Consultant)
PPHUI Building Lantai 2 suite 210 Jl. H.R. Rasuna Said Kav. C-22 Kuningan
Jakarta Selatan, 12940 Indonesia.
Tlp : 021 5290 7039
Email : [email protected]